Utility PACs Generous to Key Lawmakers in Climate Debate

[irishbobcat]

Utility PACs Generous to Key Lawmakers in Climate Debate

By ANNE C. MULKERN of Greenwire
Published: July 27, 2009
Large electric utilities that rely heavily on coal poured money into re-election campaigns as the House shaped and passed landmark climate legislation, a bill that helps those businesses partly sidestep its toughest provisions.

Employee-run committees for American Electric Power Co. Inc., Duke Energy Corp. and Southern Co. gave $165,000 to 70 House members in April, May and June. They sprinkled money among senators, too, contributing $46,500 to 18 Senate re-election campaigns.
The money went heavily to members of the House Energy and Commerce Committee that amended and voted on the bill before the final floor vote. Contributions also went to lawmakers from states where the utilities have plants.
Both the companies and lawmakers insisted there is no correlation between campaign contributions and votes. Watchdog groups believe the money buys influence and made the legislation friendlier to power companies.
"Companies give campaign contributions to gain access that they otherwise wouldn't have," said Erich Pica, spokesman for environmental group Friends of the Earth. "If you look at the provisions in the bill for coal, they got a pretty sweet deal."
The contributions came through the three companies' political action committees, which pool contributions from employees. The utilities reject the notion that the money gave them undue clout.
"Obviously, we have experts on a variety of things related to climate and our industry. We provided those experts," said Pat Hemlepp, spokesman for AEP, which sells electricity in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Tennessee, Texas, Virginia and West Virginia.
"But trying to say that our contributions led to that is kind of odd, considering we gave more during the same period last year."
AEP in the second quarter this year doled out $80,000 to 41 House members and $16,000 to 13 senators. Last year the PAC in the second quarter gave a combined $103,800 to House members and senators.
The timing of contributions is not tied to issues, Hemlepp said. The PAC contributes based on when lawmakers hold fundraisers, he said.
"In general, our PAC supports candidates for public office who are tied to our service area and also who have viewpoints that align with our company's viewpoints on issues," Hemlepp said.
But contributions that all three utilities made in April, May and June came at a key time for the energy legislation crafted by Democratic Reps. Henry Waxman of California and Ed Markey of Massachusetts. The two released a draft of that bill March 31, the last day of the first quarter. Over the next seven weeks, the two worked with Energy and Commerce Committee members to gain enough support to pass the bill out of committee.
The utilities during April, May and June gave campaign money to 25 of the 59 members of the Energy and Commerce Committee. AEP, Hemlepp said, also gave campaign contributions to lawmakers not on the Energy and Commerce Committee.
But Tyson Slocum, director of Public Citizen's energy program, believes the contributions helped utilities.
"It doesn't guarantee a vote your way, but it guarantees you access," Slocum said. "It gets you meetings. It gets you longer meetings. It helps you cultivate personal relationships."
Many of those receiving contributions were Republicans who opposed the bill in committee, their opposition creating the backdrop against which many legislative changes were made.
"If the Republicans are saying, 'higher energy price, higher energy prices,' that political pressure and messaging forces the Democrats to respond," Pica said. "Industry had a solution they were going to be happy with."
The bill sets up a program that caps carbon emissions and requires utilities to buy permits to emit carbon. It also gives away 85 percent of those permits in the early years, with the largest portion of free allowances going to local distribution companies tied to utilities. Coal-fired utilities in particular gain the most, because the allowances are given in part based on how much carbon utilities have emitted in the past.
Ohio Congressman, Charlie Wilson (6th District), the king of coal, has never met a utility PAC he wouldn't take money from. And so our children will continue to suffer from Black Lung.
Progressive Democrats are voting Green in 2010!
Dennis Spisak
Mahoning Valley Green Party
Ohio Green Party
www.ohiogreens.org
www.votespisak.org/thinkgreen/